relies on the strong position of the US dollar and has printed money many times to accelerate its domestic economic recovery process. Unexpectedly, the inflationary pressure caused by this has not only brought it to the world, but also caused its domestic CPI level to rise steadily, breaking through the 9% mark, and prices rose sharply, which made the people strongly dissatisfied.
However, in the face of the current economic dilemma, since inflation pressure cannot be fully transferred, the United States will change its approach. uses to raise interest rates by to increase interest rates to attract global investors and allow everyone to deposit money into US accounts. On the one hand, it lowers domestic inflation data, and at the same time allows the United States to use global wealth to accumulate and recover domestic economic capital.
In fact, since the United States announced its economic situation in the second quarter, many international voices have judged that the US economy has entered a "technical recession", and there are also voices in the market that hope that Federal Reserve will take appropriate actions to stimulate market vitality. However, in the face of this situation, the Federal Reserve is still full of confidence and stated that in order to reduce domestic inflation levels to 2% , it will continue to implement interest rate hike measures firmly.
San Francisco Fed Chairman Mary Daly said that based on the currently observed "favorable phenomenon", it is "reasonable" to raise another 50 basis points in September. However, she also believes that if inflation continues to rise and the domestic labor market situation worsens and worsens, it may be more appropriate to raise interest rates by another 75 basis points.
Fed rate hikes , making the circulating dollar less. So, in addition to arousing domestic market's economic concerns, it also further strengthens the US dollar index , which makes currencies such as Japan and Europe have further weakened. Previously, the euro fell below 1:1 against the US dollar. According to yesterday's latest exchange rate closing price, the current euro to the US dollar is 1:1.0164, which is still a line away from parity. If you are not careful, you will enter a contrast between Europe and the United States and the United States.
Similarly, as one of the currencies that performed poorly this year, although the yen has risen one after another in recent days, facing the big impact factor of the Federal Reserve's expectation of interest rate hikes, some experts in said that whether the current yen has caused an unclear turning point situation, and it is even too early to discuss it now, and the pressure on the yen is still very large. The decline in the exchange rate of
exchange rate has caused the purchasing power of currency in Japan and Europe to decline significantly compared with the previous one. In other words, things that were originally available for purchase at affordable prices now require more money to buy. , combined with factors such as instability in international energy prices, currency depreciation will always further strengthen inflationary pressure, making it more valuable to save people in their hands, and it is also more difficult to buy things.
In the future, as the market's expectations for the Fed's interest rate hike will stabilize, many countries such as Asia and Europe may usher in a new round of currency depreciation. . Based on the pressure brought by the US dollar, many countries are also accelerating the process of "de-dollarization".
text | Zheng Hongjie's question | Huang Zixin review | Li Zetuen
